Macy’s Borrows $4.5B, Backed by Its Real Estate Portfolio
Investors are bullish on Macy's, Inc. (NYSE: M) after the apparel, housewares, and accessories giant revealed the unexpected strength of its credit position yesterday in a press release. The $1.3 billion in senior secured notes, or bonds, that it closed on have been known to investors for some time. However, Macy's also unveiled an additional $3.15 billion credit agreement, which is asset-based.
CEO Jeff Gennette remarked: "The high quality of our real estate portfolio positioned us well to execute this offering. Additionally, the continued commitment from our bank group allowed us to more than double the size of our existing revolving credit facility." The company plans to use part of the cash it just gained to pay back a $1.5 billion revolving credit facility, freeing itself of debts that need to be repaid in 2020 or 2021.
Image source: Macy's, Inc.
Source Fool.com
